Long-term care insurance covers health or personal care costs when the insured is not able to properly care for themselves. Benefits can cover care at home or in a long-term care facility. Insurance benefits are paid in units of $10, up to a maximum of $300 per day, when care at home or in a facility is required. The income provided by long-term care insurance is currently non-taxable. Facility care is covered in British Columbia up to a certain amount, but not home care.
Generally speaking, anyone in reasonably good health up to age 80 can qualify. However, the best time to consider long-term care insurance is when you are healthy. By waiting, you not only run the risk of becoming uninsurable, you also face higher premiums. Qualifying for home care or facility care benefits requires certification by a physician. The need for special care must also be necessary due to one of the following four factors: injury or sickness, cognitive impairment, inability to perform two or more activities of daily living, medical necessity caused by a chronic condition. The long-term care benefit payments you receive, and your overall coverage, depend on the plan you select.
When buying long-term care insurance, you'll want to consider the following: the benefit amount-the amount the policy pays each day, the elimination period-the period of time you have to wait before you receive benefits, the benefit period-the length of time you will receive benefits, an inflation protection rider-this rider automatically increases your daily benefit amount each year, A return of premium rider-this rider refunds you the premium amount you've paid in the event of no claim. With Canadians living longer, home or facility care is becoming an increasingly important concern. While long-term care insurance has been around for many years in Europe and the United States, it's fairly new to Canada. Whether it would fit into your financial plan depends on your situation and the wording of the long-term care contract.
Please note: Ms. Mimi Tang, offers financial planning and insurance services as an independent representative, under Mimi Tang Wealth Management and Consulting LTD. and these services are offered independently of PEAK Securities.
PEAK Securities inc., an IIROC registered, full service investment broker, limits its responsibility to investment products such as stocks, bonds, and mutual funds. PEAK Securities inc. is a member of the Canadian Investor Protection Fund.
Call Mimi Tang at 604-566-9998 or email mtang@peakgroup.com
for financial planning in Vancouver, British Columbia, Canada.
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